PM Viksit Bharat Rozgar Yojana: A Game-Changer for Job Creation and Employer Incentives in India
The Government of India has launched the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), a visionary employment scheme aimed at boosting formal job creation while incentivizing employers. This initiative, effective from August 1, 2025, is expected to transform the employment landscape by supporting both job seekers and companies looking to expand their workforce.
Let’s explore how this scheme works, who is eligible, and how both employees and employers stand to benefit.
The PM-VBRY is a government-backed scheme launched to:
Encourage first-time job seekers to enter the formal workforce.
Provide financial support to employers for creating new formal jobs.
Promote financial literacy and formal employment compliance.
The scheme is active from August 1, 2025, to July 31, 2027, with a massive allocation of ₹1 lakh crore and a target to generate 3.5 crore new jobs across India.
Individuals entering formal employment for the first time (i.e., those who have never been registered under EPFO) are eligible to receive a one-time incentive of up to ₹15,000 under the scheme. This amount is disbursed in two installments:
First installment after 6 months of continuous EPF-covered employment.
Second installment after completing 12 months of employment and a basic financial literacy module.
The financial support is intended to help employees stabilize in their first job and encourage long-term participation in the formal economy.
Employers hiring new workers who are first-time EPFO registrants will receive a monthly incentive of ₹3,000 per new hire, paid by the government. This incentive is available for:
2 years for regular sectors.
4 years for manufacturing firms.
This reduces the financial burden of onboarding and retaining employees and encourages companies to expand operations and hire more workers formally.
For Employees:
Must be a first-time EPFO registrant.
Should be earning up to ₹1 lakh per month.
Must remain in continuous employment for 6 and 12 months to claim respective installments.
For Employers:
Must be registered with EPFO.
Must create new net jobs.
Should comply with labor law and EPFO requirements.
The scheme works in two parts:
New employees get a one-time support of ₹15,000, which includes:
Disbursement in two phases.
Linked with employment continuity.
Tied with completion of a financial literacy program.
Employers get ₹3,000/month per eligible employee to cover EPF contribution or other hiring costs. The disbursement continues:
For 2 years in general cases.
For 4 years in manufacturing sectors.
This component is expected to encourage companies to hire more and retain staff for longer durations.
Job Creation: Targets 3.5 crore new jobs over 2 years.
Formalization of Workforce: Brings informal workers under formal channels like EPF.
Financial Inclusion: Encourages savings, insurance, and long-term wealth building for employees.
Ease for Startups & MSMEs: Helps new and small businesses reduce their employee acquisition costs.
For Employers:
Register under EPFO if not already.
Start hiring eligible first-time employees.
Maintain compliance with labor and EPF regulations.
The incentive is auto-calculated and credited as per government process.
For Employees:
Ensure your first job is with a company registered under EPFO.
Stay continuously employed for 6 and 12 months.
Complete the financial literacy module as prescribed.
No manual application is required for employees—the benefit is auto-credited via the EPFO tracking mechanism.
The PM Viksit Bharat Rozgar Yojana is a forward-thinking initiative that aligns with India's vision of a developed and employment-rich economy. By balancing the needs of both employers and job seekers, the scheme offers meaningful incentives that can change the way formal hiring is done in the country.
If you are an employer planning to expand your team or a job seeker entering the formal workforce, this scheme could bring substantial financial benefits your way.